A less than truckload (LTL) service provider with extensive North American coverage
The client sought to increase its revenue booking and realization in order to scale operations and obtain other benefits, but was hampered by accounts receivable process inefficiencies.
Payment applications were automated in order to improve efficiency. A customer scorecard was developed, allowing collections to be prioritized based on their credit score. Other technological interventions included utilizing analytics to create a predictive model for unapplied cash.
Lean Six Sigma techniques were deployed to reduce invoicing errors and misapplication. This included identifying a threshold for write-offs and reducing revenue leakages.
- Working Capital Impact from reducing
- Invoicing Error $1mm
- Reduction in Misapplication 58%
- DSO Reduction 1.86 days
The comprehensive set of process improvements optimized the overall accounts receivable process, resulting in increased working capital and decreased revenue leakages.